Dynamic Spread (Fast or Slow Exits)

The Dynamic Spread strategy with configurable exit speeds allows market makers to optimize their response to market trends by controlling how quickly positions are accumulated or exited.

How It Works

  1. Functions like standard Double-Sided Dynamic Spread with added exit speed controls

  2. Fast exit mode ensures the algorithm attempts to reset in the direction of a fast exit as quickly as profitable

  3. Fast exit strategies are less profitable, but ensure the trader doesn’t get stuck in a trend they want to avoid

  4. Intelligently balances between protection and opportunity based on configured settings

Key Benefits

  • Market Trend Responsiveness: Optimizes strategy based on market direction

  • Capital Preservation: Fast exits help protect value during sustained downtrends

  • Opportunity Maximization: Slow exits prevent premature liquidation during temporary swings

  • Strategy Customization: Adaptable to different market conditions and risk tolerances

Ideal Use Cases

  • Volatile markets with clear trend directions

  • Assets requiring dynamic inventory management

  • Situations where protecting against sustained adverse movements is critical

  • Market making during uncertain market conditions

Technical Parameters

  • Exit speed configuration (fast/slow)

  • Trend detection thresholds

  • Rebalance frequency

  • Exit size multipliers

  • Standard dynamic spread parameters

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